MEDIA RELEASE SHAREHOLDER CLASS AGAINST AWB LTD. BEING EXPLORED Leading shareholder class action law firm Maurice Blackburn Cashman is investigating a shareholder class action against AWB Limited.
Since the commencement of the Royal Commission of Inquiry into AWB’s conduct under the UN’s Oil for Food Program on 16 January 2006, the share price of AWB Ltd. has fallen 33.5% from $6.40 on 12 January to $4.25 as at 8 February 2006.
Evidence received by the Cole Inquiry and announcements by AWB on 18 and 19 January 2006 concerning the arrangements in place between the Iraqi Grains Board and AWB under the Program indicate that shareholders were not advised of all the information about the company and its dealings which might materially affect the share price.
Maurice Blackburn Cashman Principal Ben Slade said the firm had been looking into the issue for a month and it was clear that shareholders who purchased shares on the market had been the victims of AWB’s failure to disclose.
“There is little doubt that information not disclosed to the market was material and that the market has been mislead by AWB. Shareholders who have suffered loss as a result of AWB’s conduct are entitled to recover those losses through the instigation of a class action,” said Mr Slade.
Maurice Blackburn Cashman is the only legal firm in Australia with an established track record in shareholder class actions. The firm represents the interests of shareholders who have suffered financially because of illegal or dishonest conduct by public companies. It has successfully concluded three shareholder class actions and is currently conducting a further three such cases. In 2003 the firm obtained $97 million for the shareholders of GIO in Australia’s first shareholder class action.
The relevant period in which the securities in AWB must have been bought in order for shareholders to participate in the class action is between 22 August 2001 (when AWB securities were listed on the Australian Stock Exchange and were therefore required to comply with the “continuous disclosure” regime under ASX Listing Rule 3.1 and s 674 of the Corporations Legislation) and the commencement of the Cole Inquiry on 16 January 2006.
Media Enquiries: Scott Parker at Maurice Blackburn Cashman on 0432 828 003.
